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BankNordik upgrades guidance for the 2020 result amid COVID-19 pandemic situation.

NORDIC BUSINESS REPORT-June 25, 2020-BankNordik upgrades guidance for the 2020 result amid COVID-19 pandemic situation

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BankNordik P/F (CPH:BNORDIK), a Faroe Islands-based financial services company providing banking and insurance services, on Wednesday made a new reassessment of the group's financial guidance for 2020 and now expects net profit in the range of DKK50m to DKK90m for 2020.

BankNordik's original guidance for 2020, announced at the beginning of the year, was a net profit in the range of DKK100m to DKK150m. Due to the impact of the COVID-19 situation and the uncertainty caused hereof, the group reassessed its financial guidance for 2020 and on 27 April 2020 announced a lowered financial guidance expecting net profit in the range of DKK30m to DKK80m for 2020, mainly due to higher loan impairments, a loss on the investment portfolio and travel insurance claims paid out.

According to BankNordik, the main reasons for now the raising the net profit guidance for the year 2020 are lower impairment charges, a lower level of travel insurance claims paid out and improvement in core earnings. In addition the stabilization and recent positive development in the financial markets has had a positive impact on the return of the investment portfolio.

Overall the impact of COVID-19 situation on the group's financial results has so far been more alleviated than expected at the end of April 2020, the group added.

(EUR1.00=DKK7.45)

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Publication:Nordic Business Report
Date:Jun 25, 2020
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